Giesecke & Devrient (G&D) is a market leader in smart card systems and security solutions. Based in Munich, the group employs over nine thousand people and operates across the World. The company gives high priority to driving new technology innovations and holds more than 7,000 patents, adding well over 100 each year. In 2007 G&D spent roughly €100 million euros on basic research and product development and employs more than 800 specialists researching and developing new products and processes. I spoke to the Head of Marketing and Communications Thomas Froschmeier about their plans for the New Year.G&D is a global leader in e-commerce solutions and high-technology innovations. What are the key factors in the company’s success?
When it comes to smartcard technology and security we’re market leaders dealing with global markets such as telecommunications and payment. We have over 150 years of experience in the security sector, and more recently in digital security. Over the years we’ve built a solid base of trust with our customers. We maintain a strong focus on innovations in new technology, such as Touch and Travel, an NFC ticketing project which won a Sesame Award. We have also worked successfully in NFC and contactless trials with Barclays in the UK, and Garanti in Turkey.
How important is the development of NFC to the industry and why do you think the technology is still yet to experience major take-up?
NFC is a really important topic and crucial for the industry. This is because contact less technology allows us to open up new business models and application opportunities. This is why G&D established a joint venture with Nokia already back in 2006. Venyon provides a secure platform for implementing applications for NFC-enabled mobile phones. The problem with the new technology is its unfamiliarity. For wide take-up to occur the customer needs to realize the benefits of the technology and learn to trust it. It’s an educational process that the industry can help to push. Commonly, an individual might worry that contact less technology will result in them losing money or having personal data stolen. Instead, we need to stress to the customer the convenience of such a solution. A good example is GSM (global system for mobile communications) which came around in the late nineties. At first take-up was minimal and some suggested the technology wasn’t useful. However, over time people began to trust it and today it’s a necessity for everyone.
You mentioned receiving a Sesame Award for your mobile ticketing solution – Touch and Travel. Was this your most successful application or highlight in 2008?
In terms of innovation, the Sesame Awards was a highlight of the year for us – it’s undoubtedly a huge honour within the industry. Nevertheless, Touch and Travel is just one application that has been recognized. We have reached a couple of other innovation milestones including Garanti in Turkey where we have introduced secure payment solutions. I believe that we’re on the forefront of contact less technology, and we’re the NFC market leaders in North America.
The Micro SD card is the first to offer contact less smart card security as well as data storage functions. Can you tell me more about the product and how it works?
A Micro SD card is essentially a flash memory drive with no security. However, with this card we have added a crypto-controller onto the flash memory card which enables data to be encrypted onto the secure flashcard. The card still retains its smartcard functions as well. A customer can have secure applications on the card, as well as digital signatures, all of which is technologically done. In the very beginning the application was based upon a three chip solution, and today we talk about one microcontroller that controls everything.
When it comes to smartcard technology and security we’re market leaders dealing with global markets such as telecommunications and payment. We have over 150 years of experience in the security sector, and more recently in digital security. Over the years we’ve built a solid base of trust with our customers. We maintain a strong focus on innovations in new technology, such as Touch and Travel, an NFC ticketing project which won a Sesame Award. We have also worked successfully in NFC and contactless trials with Barclays in the UK, and Garanti in Turkey.
How important is the development of NFC to the industry and why do you think the technology is still yet to experience major take-up?
NFC is a really important topic and crucial for the industry. This is because contact less technology allows us to open up new business models and application opportunities. This is why G&D established a joint venture with Nokia already back in 2006. Venyon provides a secure platform for implementing applications for NFC-enabled mobile phones. The problem with the new technology is its unfamiliarity. For wide take-up to occur the customer needs to realize the benefits of the technology and learn to trust it. It’s an educational process that the industry can help to push. Commonly, an individual might worry that contact less technology will result in them losing money or having personal data stolen. Instead, we need to stress to the customer the convenience of such a solution. A good example is GSM (global system for mobile communications) which came around in the late nineties. At first take-up was minimal and some suggested the technology wasn’t useful. However, over time people began to trust it and today it’s a necessity for everyone.
You mentioned receiving a Sesame Award for your mobile ticketing solution – Touch and Travel. Was this your most successful application or highlight in 2008?
In terms of innovation, the Sesame Awards was a highlight of the year for us – it’s undoubtedly a huge honour within the industry. Nevertheless, Touch and Travel is just one application that has been recognized. We have reached a couple of other innovation milestones including Garanti in Turkey where we have introduced secure payment solutions. I believe that we’re on the forefront of contact less technology, and we’re the NFC market leaders in North America.
The Micro SD card is the first to offer contact less smart card security as well as data storage functions. Can you tell me more about the product and how it works?
A Micro SD card is essentially a flash memory drive with no security. However, with this card we have added a crypto-controller onto the flash memory card which enables data to be encrypted onto the secure flashcard. The card still retains its smartcard functions as well. A customer can have secure applications on the card, as well as digital signatures, all of which is technologically done. In the very beginning the application was based upon a three chip solution, and today we talk about one microcontroller that controls everything.
What benefits will the user experience over standard security cards?
The benefits for the end-user are obvious. The opportunities for the Micro SD card are immense. It’s important to remember mobile devices are not only mobile phones, but also devices such as Mp3 players. Most mobile phones today offer Micro SD cards and in the future ipods will also have Micro SD capabilities. The card also gives the consumer the freedom to choose the combination of network operator provider and to choose a device. It’s a big step away from the conventional smartcard. The card gives the user and bank most suitable for him. So effectively, the card makes life easier and quicker for the user and the provider.
What are the main challenges facing G&D, and the industry in 2009?
The major challenge to the industry and to our company is the financial crisis. For the moment we see little or no impact because Giesecke & Devrient has a very balanced portfolio, we are remaining very positive. However, while we see no influence currently, we don’t know what will happen in the following months. We will keep a close look on the market. Away from finances it’s important to further drive all new technologies such as the Micro SD card and NFC including preparing the market and educating consumers. Finally we will be looking to complete our evolution to digital security service provider.
Going into 2009, how different is the market in comparison with five years ago?
Compared with the market around 4-5 years ago the biggest change is the competitor landscape. There are not as many international competitors as a result of a series of large mergers such as Axalto and Gemplus (Gemalto). The markets are globalised, with international providers and regional companies influencing the global competition. In 2005 pricing was of utmost importance, and the pressure to raise prices was huge. This peaked in 2006 which as I’m sure you are aware was a difficult year for the industry. Today price pressure is far more moderate – a positive signal for the industry. Instead quality of product takes precedence and is deemed way more important.
The benefits for the end-user are obvious. The opportunities for the Micro SD card are immense. It’s important to remember mobile devices are not only mobile phones, but also devices such as Mp3 players. Most mobile phones today offer Micro SD cards and in the future ipods will also have Micro SD capabilities. The card also gives the consumer the freedom to choose the combination of network operator provider and to choose a device. It’s a big step away from the conventional smartcard. The card gives the user and bank most suitable for him. So effectively, the card makes life easier and quicker for the user and the provider.
What are the main challenges facing G&D, and the industry in 2009?
The major challenge to the industry and to our company is the financial crisis. For the moment we see little or no impact because Giesecke & Devrient has a very balanced portfolio, we are remaining very positive. However, while we see no influence currently, we don’t know what will happen in the following months. We will keep a close look on the market. Away from finances it’s important to further drive all new technologies such as the Micro SD card and NFC including preparing the market and educating consumers. Finally we will be looking to complete our evolution to digital security service provider.
Going into 2009, how different is the market in comparison with five years ago?
Compared with the market around 4-5 years ago the biggest change is the competitor landscape. There are not as many international competitors as a result of a series of large mergers such as Axalto and Gemplus (Gemalto). The markets are globalised, with international providers and regional companies influencing the global competition. In 2005 pricing was of utmost importance, and the pressure to raise prices was huge. This peaked in 2006 which as I’m sure you are aware was a difficult year for the industry. Today price pressure is far more moderate – a positive signal for the industry. Instead quality of product takes precedence and is deemed way more important.
Finally, what does the future hold for G&D, both short term and long term?
I’m confident our future will be good. We have a solid structure and financial base and we aren’t dependant on share market prices, an issue which affects other companies. We also have the confidence and trust of our customers which is really important.
I’m confident our future will be good. We have a solid structure and financial base and we aren’t dependant on share market prices, an issue which affects other companies. We also have the confidence and trust of our customers which is really important.
(Smartcard News Ltd, 2009)
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